Journals Information
Universal Journal of Accounting and Finance Vol. 10(1), pp. 171 - 180
DOI: 10.13189/ujaf.2022.100118
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Analysis of Audit Competencies and Internal Control on Detecting Potential Fraud Occurrences
Mochammad Solichin 1, Zuraidah Mohd. Sanusi 2, Razana Juhaida Johari 2,*, Tri Gunarsih 1, Nur Aima Shafie 2
1 Faculty of Business & Humanities, Universitas Teknologi Yogyakarta, Indonesia
2 Accounting Research Institute, Faculty of Accountancy, Universiti Teknologi MARA, 40450 Shah Alam, Selangor, Malaysia
ABSTRACT
It is stated that fraud in the government sector includes deceptive acts such as asset misappropriation, loss of state income, falsification of financial records and reports, and mark-ups in government financing. The purpose of this study is to investigate the potential impact of audit competences (professional skepticism and audit experience) and internal control on an auditor's capacity to detect potential fraud occurrences. Primary data were gathered via a printed questionnaire distributed to the 149 government auditors who work at Indonesia's Inspectorate Office. The findings, based on the Partial Least Squares of structural equation modelling, show that both audit competences have a significant impact on the capacity to detect probable fraud. Internal control, on the other hand, has no direct impact on the capacity to detect potential fraud. The findings show that internal control significantly moderates the link between audit competencies (professional skepticism and audit experience) and the auditor's ability to detect potential fraud occurrences. This research offers practical government suggestions for improving government auditors' professional audit competencies and abilities. Audit authorities should be able to create a more effective internal control structure that prioritizes feedback and learning. The limitations of the study as well as future research are highlighted.
KEYWORDS
Audit Competencies, Government Auditor, Professional Skepticism, Audit Experience, Internal Control, Fraud Occurrences
Cite This Paper in IEEE or APA Citation Styles
(a). IEEE Format:
[1] Mochammad Solichin , Zuraidah Mohd. Sanusi , Razana Juhaida Johari , Tri Gunarsih , Nur Aima Shafie , "Analysis of Audit Competencies and Internal Control on Detecting Potential Fraud Occurrences," Universal Journal of Accounting and Finance, Vol. 10, No. 1, pp. 171 - 180, 2022. DOI: 10.13189/ujaf.2022.100118.
(b). APA Format:
Mochammad Solichin , Zuraidah Mohd. Sanusi , Razana Juhaida Johari , Tri Gunarsih , Nur Aima Shafie (2022). Analysis of Audit Competencies and Internal Control on Detecting Potential Fraud Occurrences. Universal Journal of Accounting and Finance, 10(1), 171 - 180. DOI: 10.13189/ujaf.2022.100118.